After back testing, assuming the system looks lucrative, you may then test it in a demo account on the live market. This gives another range of valuable foreign exchange trading information in relation to your system.

Demo testing is still risk free because you won’t be using real cash, but you are reacting to the state of the market in real time. Obviously this is a slower process because you’ve got to wait for a trading signal instead of scrolling thru past charts. It gives extraordinarily valuable feedback about how you would really operate the system. It is possible to test several systems at the same time in a forex demo account, which saves time. However, it is important to record them separately. Testing your system effectively can take a while, but it’s time very well spent. While you are testing you’ll be learning a big amount about the behaviour of the market and your own trading behaviour, as well as the system itself. They look for more and more FOREX trading info but do not see that their own character has a repercussion on their trading too.